Microeconomics Answers

Sean is buying salad and pizza for a company lunch. Suppose that a bowl of salad costs $5.00, and a slice of pizza costs $3.00.

Let E

E be the amount in dollars that Sean spends on salad and pizza. If Sean buys S

S bowls of salad and P

P slices of pizza, then the total amount of money he spends (E

E) can be represented by the equation    .

Now rearrange the equation you wrote above so that P

P is written in terms of E

E and S

S. The quantity of pizza he buys can be represented by the equation    .

Suppose Sean has $30.00 to spend on salad and pizza; that is, E=$30.00

E=$30.00.

In the essay, discuss how consumers, producers and government have been affected during this current COVID19 pandemic

1.     The following production function has been estimated for wheat:

where, W = Wheat yield (kg/ha), F = Fertiliser (kg/ha) and L = Labour (hours/ha)

Derive an expression for the least-cost expansion path given that fertiliser costs R12 per kg and labour costs R6 per hour.                                                                                       

Suppose the following demand and supply function:

Q^d = 750 – 25P

Q^s = -300 + 20 P

       i.           Find equilibrium price and quantity

Find consumer and producer surplus

A competitive firm's short-run supply curve is part of which of the following curves?

• A. Marginal revenue
• B. Average variable cost
• C. Average total cost
• D. Marginal cost

If a firm in a perfectly competitive market doubles the number of units of output sold, then total revenue will

• A. more than double.
• B. exactly double.
• C. remain constant.
• D. less than double.

in 2019 fiscal year estimated that Ghanaians saved 20 percent of their disposable income; however, due to overconsumption in the previous year, autonomous saving for 2019 was negative 100 million Ghana cedis. The government of Ghana imposed a lump sum tax of Gh ₡ 20 million. In addition to the lump sum tax the government also took 20 percent of all incomesearned in the economy in the form of proportional tax. The total government expenditure was GH ₡50 million in 2019. Total investment recorded for 2019 was 66 million. 

(A) Determine the tax function for this economy.

(B) Derive the consumption function based on the above information

(C) Write out the aggregate demand equation

(E) Determine the equilibrium consumption

(F) Calculate the value of the government expenditure multiplier for this economy and interpret your result

(G) Calculate the total tax revenue to the government

Are apple relatively elastic or inelastic?

Identify the three stage of production in table form and graphically.labor= 0 1 2 3 4 5 6 7 8&total product= 0 3 7 12 16 18 19 19 16.when the law of diminishing marginal return does start to operatу?